What is the optimal order quantity

Assignment Help Finance Basics
Reference no: EM132999993

The annual sales of a car are $1 billion (i.e. $1,000,000,000). The sale price is $19,800 per car. The cost of placing an order is $980. The annual carrying cost per car is 2% of the sale price. What is the optimal order quantity?

Reference no: EM132999993

Questions Cloud

How much is the increase or decrease in liability on June : On June 1, 2020, Kielvj Company discounted a 6-month P1,500,000 customer note at 11% with a bank. How much is the increase or decrease in liability on June
Firm level of dividend payout : To fairly price the default risk of a loan to a particular firm, a lender should always increase the loan interest the greater is the firm's level of dividend p
How much will poke have to pay the dealer : Poke Ltd and Ash Corporation negotiate a $15 million, 5-year interest-rate swap in in which Poke will pay 4.25% fixed rate to Ash and Ash will pay Libor to Poke
Why would institutional investors utilize iceberg orders : Why would institutional investors utilize Iceberg orders and/or hidden orders? What difference between call auction and continuous auction
What is the optimal order quantity : The cost of placing an order is $980. The annual carrying cost per car is 2% of the sale price. What is the optimal order quantity?
What are the characteristics of market orders : Why is order book (limit order book) so important? Duration stipulated orders - what are they? What are the Characteristics of market orders
What another name for quote driven market : Walrasian auction, Dutch auction, First price Sealed bid and Continuous double auction - which two auctions are used in exchanges the most i.e. everyday?
What is the variance of the stock returns : A stock will have a loss of 15% in a bad economy, a return of 11.3% in a normal economy, and a return of 25.2% in a hot economy. There is a 29% probability of a
Characteristics of effective business communication : Critically analyse texts and/or multimedia material in both a business and academic context - evaluate characteristics of effective business communication

Reviews

Write a Review

Finance Basics Questions & Answers

  Problem regarding the tma template

Nakami has been profitable in FY 2015 and the Board is planning to declare dividends to its shareholders. They intend to declare a cash dividend of $2 million at the forthcoming annual general meeting. However, the Board is unsure whether this is ..

  Write a brief summary of what your findings mean

A company car is in a wreck and the company expects to have to pay a substantial sum to persons who were injured. State what type of disclosure.

  Estimate the average annual return you would have made on

unicom is a regulated utility serving northern illinois. the following table lists the stock prices and dividends on

  You want to retire in 30 years you deposit 20000 in the

you want to retire in 30 years. you deposit 20000 in the account now and plan to save an equal amount each year for the

  Present financial crisis

Suggest monetary solutions for the present financial crisis and discuss if those solutions are always applicable.

  Consider the industrial supply company example

Consider the Industrial Supply Company example (Table 4.4) again. Assume that the company plans to maintain its dividend payments at the same level in 2011 as in 2010. Also assume that all of the additional financing needed is in the form of short..

  Price of the put with the same strike and expiration date

Use put-call parity to compute the price of the put with the same strike and expiration date.

  Salary increases at an average annual rate

If your salary increases at an average annual rate of 9.72 percent, how low will it take to reach your goal?

  Coefficient of correlation between the spot price

A) Should the hedger take a long or short futures position?

  Prepare schedules showing current receivables

Clarey sold a parcel of land to Hermes Corporation for $400,000 under an installment note contract. Hermes made a $100,000 down payment on April 1, 2007 and signed a 5 year 12 percent note for the $300,000 balance.

  Determine the value of the bond

National Steel 15-year, $1000.00 par value bonds pay 8 percent interest annually. The market price of the bonds is $1,085.00 and your required rate of return is 10 percent.

  Value of mega profit corporation without leverage

a) What is the value of Mega Profit Corporation without leverage? b) What is the value of Mega Profit Corporation with leverage?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd